This continuing study of the impact of Federal child health policy on states now includes Connecticut and Vermont. The effort includes the review of Congressional intent, Executive Branch regulations, state reactions. Interest groups have been interviewed and analyzed for their impact; state and federal health/welfare departmental interaction studied; flow of funds described. Some tentative conclusions have been reached as to the influence, results, and patterns of action of these agencies, groups, and participant bodies. Research activity now underway aims to confirm the tentative findings; describe more accurately the distributional aspects of public health expenditures and the distribution of care under the federal mandate. A typology of interest group activity; mapping of service distribution and a brief questionnaire for state officials to provide routine feedback on operational effectiveness of the federal mandate are in preparation.